We filed a Claim on Bond on 11/01/2022. tn e the last date we furnished labor/material was on 04/28/2022. The bonding company has pushed off the bond claim stating that this is a bone fide dispute between parties. The Contractor is holding our money and is refusing payment on this public project. What is our next step to enforce the Claim on Bond? Thank you
Without more information, it is impossible to provide you legal advice you can or should rely on. It sounds as if the surety is telling you there needs to be a resolution to the bone fide dispute before it can act. That means you need to prove up your claim and have it determined that you’re entitled to be paid. This generally requires some sort of dispute resolution process be it litigation, arbitration, or some other form of binding dispute resolution. Once your claim is confirmed, should the other party still not pay, then the surety is more likely to release the funds to you.
These claims are often time bound. Because you are fast approaching one year from the last contribution of materials and labor, you should talk with an attorney knowledgeable about bond claims before you lose your right to pursue your claim under the bond.